Attorney General Aaron M. Frey announces $1.85 billion settlement with student loan servicer Navient
January 14, 2022 Maine Attorney General Aaron M. Frey filed a Complaint and Consent Judgment today in Kennebec County Superior Court resolving alleged unfair and deceptive practices in connection with Navient’s student loan serving business. The settlement will require court approval. According to the attorneys general, the interest that accrued because of Navients forbearance steering practices was added to the borrowers loan balances, pushing borrowers further in debt. Had the company instead provided borrowers with the help it promised, income-driven repayment plans could have potentially reduced payments to as low as $0 per month, provided interest subsidies, and/or helped attain forgiveness of any remaining balance after 20-25 years of qualifying payments (or 10 years for borrowers qualified under the Public Service Loan […]
